Note: This Is a Kaplan CPA Review Question

question 55

Multiple Choice

Note: This is a Kaplan CPA Review Question
The following related entries were recorded in sequence in the general fund of a municipality:
The sequence of entries indicates that

• A) Encumbrances were anticipated but later failed to materialize and were reversed. A liability of $12,350 was incurred.
• B) An adverse event was foreseen and a reserve of $12,000 was created; later the reserve was cancelled and a liability for the item was acknowledged.
• C) An order was placed for goods or services estimated to cost $12,000; the actual cost was $12,350 for which a liability was acknowledged upon receipt.
• D) The first entry was erroneous and was reversed; a liability of $12,350 was acknowledged.

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Definitions:

Physical Assessment

An evaluation of the body by a healthcare provider to detect signs of disease or abnormalities.

Registered Nurse

A nurse who has completed the necessary education and licensure requirements to provide patient care and administer medications.

Grumpy Behavior

Display of irritability or bad temper by an individual, often with a propensity to be easily annoyed or provoked.

Back-channeling

A form of listener response in communication that indicates attentiveness, encouragement to continue, or agreement, without interrupting the speaker.